Media OutReach<\/a>\u00a0–\u00a024
\nJanuary 2022 – <\/b>Asia Pacific’s data center market continues to grow at a
\nrelentless pace and is set to become the world’s largest data center region
\nover the next decade. According to Cushman & Wakefield’s latest 2022 Data
\nCenter Global Market Comparison report, Hong Kong, Singapore and Sydney are
\nranked among the top 10 data center markets in the world.<\/p>\nConstruction totals continue to grow
\nglobally, with 4.1 gigawatts (GW) currently underway in the markets covered, up
\nfrom 2.9 GW in the previous study and 1.6 GW in the year before that. The
\nlargest clients continue to require larger builds, with 100 megawatt campuses
\nbecoming increasingly common.<\/p>\n
Ranked outside the overall top 10 markets last
\nyear, Hong Kong makes a big jump in 2022, coming in at sixth place globally and
\nsecond in Asia-Pacific. John Siu, Managing Director, Hong Kong at Cushman
\n& Wakefield<\/b> said: “Hong Kong offers a robust development pipeline,
\nexcellent networks and all major cloud services are available. The city also
\nretains its crown as the globally lowest taxed data center jurisdiction. As a
\nglobal financial and business capital, with a long history of pro-business
\npolicies it accordingly offers a robust data center sector.”<\/p>\n
Mr. Siu added,
\n“Strong demand from data center investors and operators have triggered high
\nvolume of transactions in 2021. For example, Mapletree acquired an industrial
\nsite via a government tender for a ground-up data center development, totaling
\ncirca 217,000 sf; ESR bought an industrial building (circa 294,000 sf) for a
\nwholesale data center conversion; whereas GDS also purchased an industrial
\nbuilding for a data center redevelopment (circa 277,000 sf). In the next 5-year
\nhorizon, the city’s total new supply will amount to 5.5 million sf. That said,
\nthe supply pipeline in the medium to long term will be constrained by shortage
\nof land and power supply in the popular data center submarkets, such as Tsuen
\nWan and Kwai Chung. To support the city’s development as a world-class data
\ncenter market, it is therefore crucial for the government and power suppliers
\nto break the bottleneck and increase land supply and power capacity into these submarkets.”<\/p>\n
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Shanghai retains its position as the
\nworld’s fourth largest data center market by total market size, with market
\ncapability of more than 0.6 gigawatts surpassed only by Northern Virginia,
\nLondon and Tokyo. Beijing was ranked 13th for the same indicator.<\/p>\n
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Further growth in Asia Pacific is expected
\nthroughout at least the next five to 10 years, as the region requires entirely
\nnew builds due to a lack of existing infrastructure for retrofit. Globally,
\nregions across Latin America and Africa are also expected to enjoy considerable
\ngrowth in coming years, as new undersea cables are bringing faster access to
\nmany markets for the first time. Secondary markets across the world continue to
\ngrow, with many soon to reach current primary market size.<\/p>\n